What is a Budget Manual?

A budget manual contains a set of instructions, showing department managers how to prepare their budgets for the upcoming year. Using a manual standardizes the information that is prepared for the accounting department, while also clarifying the timing for when budget information is supposed to be submitted for review.

When to Use a Budget Manual

Budget manuals are most commonly used in larger organizations where there is a high degree of complexity, requiring more coordination in the preparation of a budget model. it is especially useful when there are many people involved in the budgeting process, since it shows each of them which tasks they are responsible for completing, as well as their deliverable due dates.

There is less need for a budget manual in a smaller organization, where operations are simple enough to not require a high degree of budgeting coordination.